KUALA LUMPUR: Brahim’s Holdings Bhd (BHB) targets to exit the Practice Note 17 (PN17) status by the end of 2020, having made a turnaround in the third quarter of this year.
Executive chairman Datuk Seri Ibrahim Ahmad said the inflight catering group, which posted a loss in the last financial year and the first half of this year, returned to the black in the quarter ended Sept 30 with a pre-tax profit of RM3.2 mil against a loss of RM9 mil a year earlier.
He expressed hope that the performance in the last quarter of this year would be even stronger and that BHB would do much better next year.
“The company expects to submit a regularisation plan to the Securities Commission in February next year, which is subject to approval before proceeding with the next requirement.
“We need to have two consecutive quarters of profitability after that before we can exit the PN17 status,” he told reporters during a briefing on the company’s outlook on Dec 20.
For this year, he noted that the group had clinched five new airline food catering contracts, including from Royal Brunei Airlines, KLM and Starlux Airlines, with another three to four contracts in the pipeline.
BHB lapsed into PN17 status in March this year after its shareholders’ equity on a consolidated basis for the fourth quarter ended Dec 31, 2018, fell below 25% of its issued capital, at less than RM40 mil.
At the briefing last Friday, BHB also inked a heads of agreement (HOA) with MRI VC Bhd, a frozen food manufacturing and investment company, as part of its regularisation plan which will see MRI participating in a proposed private placement and a proposed rights issue.
Capital reduction would also be included in the plan, Ibrahim said.
The proposed investment would see MRI VC becoming a substantial shareholder in BHB, he said, adding that the shareholder value would be maximised with the creation of this new partnership and investment.
The partnership, he said, was expected to be finalised in the first half next year subject to Bursa Malaysia’s approval. – Dec 23, 2019, Bernama
